Apple supplier Foxconn Technology Group and India-based Dixon Technologies have urged the Indian government to release billions of rupees they believe they qualify for under the nation’s production-linked incentive (PLI) program.
The PLI scheme, which promised ₹410 billion ($4.8 billion) in subsidies to manufacturers, faced a shortfall in allocation as some companies failed to meet their production targets. Foxconn and Dixon contend that they are eligible to claim part of the unallocated funds. Sources familiar with the situation suggest Foxconn may receive up to ₹6 billion and Dixon ₹1 billion if the government approves their requests.
Introduced by Prime Minister Narendra Modi’s administration, the PLI program aims to boost manufacturing by setting annual production-based thresholds for both global and domestic electronics firms. It also allows for redistribution of unused funds to companies that exceed their production targets.
While Foxconn, Dixon, and government representatives have not commented on the matter, the requests are under review, according to sources. The outcome of these claims could significantly impact the financial dynamics of the PLI initiative, which has been a cornerstone of India’s strategy to bolster domestic manufacturing.
The resolution of these subsidy claims will be closely watched, as it sets a precedent for future redistribution of unused PLI funds.
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